http://www.brucelindbloom.com/index.html?RGB16Million.html
So there we are, Ralph has already done the experiment which I described above and the answer is, you are throwing away 87% of your data. Ralph doesn't note whether the conversion used black point compensation or not. I suspect it did.
Wow. I knew it would be nasty, but I had no idea it would be that severe. Thanks for the link!
Really, really bad. 'Don't ever do that' bad.
Oh, don't worry, I don't. Most of my work is done on 8-bit sRGB files (enhancing other people's cruddy images), so I don't take too many risks.
The reason I ask is because I see hundreds of people on other forums recommending converting into and out of LAB for various edits, particularly sharpening on the L* channel. I always had a feeling this was dangerous, so I use the Dupe Layer>Luminosity Mode method instead. The folk recommending these conversions might only be doing it on high-bit files, but they certainly don't say so, so it worries me that eager newbies might be performing these conversions recklessly on their own 8-bit files.
Always promote your sRGB to 16 bits first, then convert to LAB.
Ok, have I got this right?:
1. Convert 8-bit sRGB to 16-bit sRGB (no improvement to quality of file - visually, still 256 levels of colour per channel)
2. Convert 16-bit sRGB to 16-bit LAB (negligible, in fact imperceptible quantization)
3. Make an edit in 16-bit LAB (ok, this is where I'm a bit hazy. If I make a Curves adjustment on this file, will I get similar banding as to the original 8-bit sRGB file? To my mind, I will, because the colour levels are still "in blocks", as it were, despite being in 16-bit.)
4. Convert 16-bit LAB file back to 16-bit sRGB file (again, negligible quantization)
5. Convert 16-bit sRGB file back to 8-bit sRGB file (and again, negligible quantization)
So it's step 3 where I'm unclear. I doubt the original 256 levels per channel are suddenly going to magically smooth out into a wonderful 65536 levels during a Curves adjustment.
However, I'm aware of the importance of your advice. Converting to 16-bit before other conversions at least ensures the original 256 levels are mostly maintained, whereas a plain sRGB-to-LAB 8-bit conversion gives us about 33 levels per channel (13% of 256). Yeesh!
That converter only tells you the loss in the number of unique levels caused by a gamma (transfer) function. Its unrelated to the volume of the colour gamut.
I don't really understand what you just said, but at least it confirms what I thought - ie, that the calculator didn't answer my original question.